Are we going to witness an historical housing price correction amid sharpest rise in unemployment and social tension?...and the minimum you should know in order to protect yourself from this downturn from an economic, stock market and political point of view... with a pinch of humor and sarcasm.

Thursday, 17 January 2008

Construction Cost Soaring : The Metro

"The planned extension of Helsinki's metro system west to Espoo is being jeopardisedby rising costs. Construction of the extension is now estimated to reach 800 million euros. The state has promised to pay for one third of the cost, but the near doubling of the price tag could prove too much for the government."

"The Espoo City Council gave the go-ahead for the extension of the Metro in September 2006. At that time, the line from Ruoholahti in the west of Helsinki to Matinkylä was expected to cost 430 million euros."

"The approval of the project by the Espoo City Council was made conditional to a one-third contribution to the costs by the state. Now there are suspicions that the government and Parliament might balk at the prospect of granting 300 million euros to a transport project of one city."

The metro project idea to the west part of Espoo has been talked about for the past 20 years. As usual when construction is booming /has boomed then they decide to make such plan happen. You wonder why? it's not only the sheep phenomenon...

Maybe because west Espoo especially Tapiola is losing market share in term of consumers coming to the Tapiola Shopping center as competition with other malls has increased (Iso Omena and Sello Shopping centers).

At the end maybe the east and the west will join? but some are reluctant...